A May 5 article by BoardIQ titled “New Tasks for Boards Under Proposed Valuation Rule” reports that The SEC’s proposed fair valuation rule contains new requirements for oversight, reporting and recordkeeping, which could increase the workload of directors whose funds hold illiquid securities. The piece includes insights from asset management partner Paulita Pike. While much of the proposal tracks with typical fair valuation practices, some elements are new, Paulita notes in the piece. The proposal’s focus on evaluating fair valuation through the lens of risk, for example, may be unfamiliar to some boards, she says, and it may be worthwhile discussing what enforcement along those lines could look like.
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